The Principality Building Society has reaffirmed its support for the introduction of home information packs, despite a survey showing that the majority of the UK's mortgage lenders have serious reservations. The new packs, which are due to be introduced in June next year, will see house sellers being res-ponsible for commissioning a detailed report on their properties up for sale. The Government say the packs will cost about £635 to put together and will include proof of ownership, local authority searches and a home condition report into the state of the property.

However, a survey last week showed that nearly two-thirds of mortgage lenders think the introduction of HIPs will have a negative impact on the property market.

Lenders are worried that the packs will slow down transactions, increase the cost of selling a home and create short-term distortions in the market, according to the Intermediary Mortgage Lenders Association.

However, Principality director of business development, Mick McGuire, pictured, believes HIPs will have a positive impact on the housing market.

Mr McGuire said, 'HIPs will carry a cost for people selling a house, but they will save buyers _ especially first-time buyers - from paying for a survey.

For Principality borrowers, HIPs will also reduce or negate the cost of a lenders' valuation.

'They will also increase transparency in the housing market and, by speeding up the house buying process, be good news for both buyers and sellers alike.

'However, for customers to fully benefit, there is a need for everyone in the industry - including estate agents, solicitors, surveyors and lenders - to fully embrace the changes and work together to make HIPs happen on time'.

The Principality said that currently some £350m a day is wasted by consumers as a result of aborted transactions, as buyers often spend hundreds of pounds on valuations, legal advice and searches.

The mortgage lender said that by providing key information at the beginning of the house-buying process, HIPs will prevent waste and significantly cut the number of sales that fall through.

The home condition report, an objective report on the condition of the property, is a key part of the HIP.

Mr McGuire said, 'We are committed to delivering a market-leading HIP proposition for all our customers and to support estate agents in Wales.